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HomeMy WebLinkAbout1999-08-09 City Council (15)TO: FROM: City of Palo Alto C ty anager Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PUBLIC WORKS12 DATE:AUGUST 9, 1999 CMR:341:99 SUBJECT:DIRECTION ON DESIGN APPEARANCE AND MASSINGFOR PARKING STRUCTURES; APPROVAL OF BUILDOUT OFLOT S/L FOR A TEEN CENTER AND OFFICE SPACE;AND APPROVAL OF BUDGET AMENDMENT ORDINANCE INTHE AMOUNT OF $70,000 FOR DOWNTOWN PARI~NG STRUCTURE FEASIBILITY STUDYCAPITAL IMPROVEMENT PROJECT 19530 REPORT IN BRIEF On July 7, 1997, Council approved proceeding xvith steps that will potentially lead to the construction of up to two multi-level parking structures in the downtown area. The taro potential sites are Lots S and L (Bryant/Lytton/Florence) and Lot R (south of University Avenue, between High/Alma south). An application for Planned Community Zoning, Draft Environmental Impact Report (DEIR), Tentative Subdivision Map, and design concepts have been presented to the Planning Commission and Architectural Review Board (ARB). The DEIR has been revised by the Planning Commission and ARB, and the Final EIR will be presented to Council, along with the PC zoning and Tentative Subdivision Map, in the Fall. The Planning Commission supported the ARB’s belief that the structures are too large for their sites and voted to deny the project as currently envisioned. Both the Planning Commission and the ARB have recommended that each garage be reduced by one above- pound floor, if possible. In addition to height issues, the ARB recommended that the garages look less like buildings, and have a more open "parking structure" appearance. The Planning Commission felt that the parking structures should not be the largest buildings downtoxvn and should fit into the streetscape as background buildings. In addition to exterior design and massing issues, staff is requesting direction on the use of surplus, non-parking space at the comer of Bryant/Lytton. This area could be used for an office, Teen Center or retail space or some combination of these. The DEIR allows for construction of up to three floors at approximately 4,500 square feet per floor. Staff is recommending two floors (for a total of 9,000 square feet) with office and Teen Center CMR:341:99 Page 1 of 21 use instead of retail, since retail use would attract more vehicles and only minimally offset the benefit of constructing the garage. Staff is requesting approval of a Budget Amendment Ordinance for $70,000, which would reimburse the design budget for preparation of the Tentative Subdivision Map and DEIR, and for subsurface investigation and design related to the garage foundation at the Lot R site. CMR:341:99 Page 2 of 21 RECOMMENDATION Staff recommends that Council: o o o o Direct staff to proceed with the design of Lot SiL as presented in the Environmental Impact Report (EIR). This would consist of a "building style" exterior, with seven levels (two levels below-grade, one level at-grade and four parking levels above-grade). Direct staff to proceed with the design of Lot R as presented in the EIR. This would consist of a "building style" exterior with five levels (no levels below- grade, one level at-grade and four parking levels above-grade). Approve proceeding with the design of two floors for office and Teen Center use in the non-parking area adjoining the garage at the corner of Bryant/Lytton Avenues. The property would be paid for by the City General Fund, and lease proceeds from a long-term office rental would be used to offset the construction cost of the Teen Center portion of the building. Approve the concept of providing areas for potential Automatic Public Toilets (APTs) at each garage. Staff will re-assess the need for two additional APTs at the garage locations prior to construction of the garages. Approve a Budget Amendment Ordinance (BAO) in the amount of $70,000 for additional design-related services (Attachment A). Attachment B summarizes the BAOs approved to date in 1999-00. Approve and authorize the Mayor or his representative to increase the contract change order authority with Watry Design Group for contract C6076145 from $34;100 to $119,100. This increase is for design and legal services related to additional foundation investigations at Lot R, for surveying and title reports needed for the preparation of Tentative Subdivision maps at both sites, and for preparation of an Environmental Impact Report. This work would be funded by means of the BAO plus a contract change order to deduct $15,000 from contract C 8103688 with Turner Construction. PROJECT DESCRIPTION On Januar?° 12, 1998, Council approved proceeding with the design of two multi-level parking structures in the downtown area (CMR:109:98). The two structures would be located at Lot R (south of Universit?~ Avenue, between High/Alma Streets) and Lots S and L (Bryant!%ytton). The two garages would provide a total of approximately 700 new parking spaces to offset the existing downtown parking deficit of 1,500 spaces. Pursuant to Council direction, the design was funded to the 50 percent completion stage, at which CMR:341:99 Page 3 of 21 time it will be presented to Council for approval. Upon Council approval of the 50 percent documents, proceedings to form an assessment district will be held. If an assessment district is approved by a majority of downtown property owners, the design will be completed and the project advertised for construction bids. The building design that has been followed by staff is based upon preliminary design concepts that had been presented to the ARB,. Planning Commission and Council ("Scheme A") in 1996. Plans showing the current proposed configuration of the garages are shown in Attachment C, and meeting minutes from the public reviews are given in Attachment D. A summa~" of the components of the application submitted is as follows: Parking Structure Design: The parking garages include the number of levels and spaces as outlined below: Existing Added Total Spaces Spaces Spaces Lot R (High!Alma)71 156 227 Lot S/L (Bryant!Lytton)109 537 646 Total:180 693 873 Levels Levels Below At & Above Grade Grade 0 5 2 5 The height of Lot S/L would be 48 feet to the top of the railing on the fifth level and 64 feet to the top of the elevator. The top level would not be covered. The total floor area is 206,300 square feet. Primary vehicular access is proposed from a tw0-way driveway on Florence and Bryant. Pedestrian access would be accommodated with a stairway near the Florence Street side and a stairway and two elevators located near Bryant Street. A third stairway would be added near the potential leased area at Bryant/Lytton. Other amenities included in the project consist of: a landscaped plaza located on the Bryant Street side of the structure; a light well in the center of the structure to provide light and air circulation; bicycle lockers and racks; and electric vehicle hookups/recharging stations. The Lot R structure would be 48 feet to the top of the railing on the fifth level and 58 feet to the top of the elevator. The top level would not be covered. The total floor area would be 97,700 square feet. Primary vehicular access is proposed from a two-way driveway on Alma and High Streets. Pedestrian access would be accommodated with a stairway and elevator near the High Street side and a stairway near Alma Street. Other amenities included in the project consist of: a pedestrian walkway between Alma and High Streets; a 5,200 square foot landscaped plaza at the north side of the lot; bicycle lockers and racks; and electric vehicle hookups!recharging stations. CMR:341:99 Page 4 of 21 Permit Parking: The majority of the new spaces in both garages would be used for employee permit parking only (these spaces would become available to the general public before 8 a.m. and after 5 p.m.). On the existing surface parking lots there are a total of 144 parking spaces available for use by the general public (35 on Lot R, 109 on Lot S/L). This same approximate level of public, non-permit spaces could be provided for in the new garages. The ground floor levels of the proposed structures would provide a total of 130 spaces (41 on Lot R, 89 on Lot S/L). Additional general public spaces could be made available on other floors, depending upon the layout of the final floorplan, the feasibility and type of parking enforcement, etc. Staff will return with more information on the use of parking permits as the design progresses. In the future, staff will be presenting recommendations for a downtown residential parking permit program for the downtown area. It is anticipated that the timing for implementing any parking permit program would be coordinated with the construction of any new downtown parking garages. This would help ensure that any downtown employees displaced by a residential parking permit program will have a garage in which to park, and not simply relocate into other neighborhoods. Public Art: A budget for public art has been established for each of the structures, at approximately 1 percent of the construction cost. The services of an artist were not secured at the beginning of the project so that the limited project funding could be focused on the design and other items with high construction cost implications. An informational presentation was made to the Public Art Commission (PAC) in September 1998, and if an assessment district is approved, staff will work with the PAC to secure the services of an artist(s). A representative from the PAC is a member of the Parking Study Group. The artwork could consist of a stand-alone piece, or an artistic upgrade to an element of the structure’s architecture such as custom handrails, tile, signage, etc. or a combination of these. Electric Vehicles: Charging connections for electric vehicles would be included on at least one floor of each garage. Conduit for wiring additional future charging stations would be provided throughout both structures with the connections installed as the need for additional stations increases. The design and construction costs for the connections would be paid by the Utilities Department and not financed by the parking assessment district. Planned Community Zoning Application: The proposed garages would not be permitted under the provisions of the current PF zoning or Commercial Downtown- Community (CD-C) zoning, because the Floor Area Ratio (FAR) of the garages exceeds the PF and CD-C limits of 1:1. The proposed PC zoning permits increase in the minimum FAR and reduction in the setbacks. If the PC zoning is approved, the resultant FAR for Lot S/L would be 2.92:1 with no minimum setback and 206,300 CMR:341:99 Page 5 of 21 square feet of garage area. The FAR for Lot R would be 3.1:1 with a setback on the north side of the lot. Draft Environmental Impact Report: The environmental assessment finds one area as having "significant and unavoidable impacts." This is the temporary loss of approximately 180 parking spaces during construction. Prior to the start of c.onstruction, staff will develop a plan for parking during construction. This issue is discussed in greater detail later in this report. : Tentative Subdivision Map: In order to process the zoning change, a Tentative Subdivision Map was required for each site to merge parcels. If an assessment district is approved, a final map will be presented for approval. BOARDS AND COMMISSION REVIEW The application for parking structure design approval of the application for PC Zoning, EIR and Tentative Subdivision Map was presented.to the Planning Commission and Architectural Review Board during the period from January through July, 1999. The project was also presented to the Historic Review Board (HRB) as an information item on May 19, 1999. Planning Commission The Planning Commission reviewed the parking garage projects at two separate meetings. They completed a preliminary review on January 13, 1999, and final recommendations were completed on July 28, 1999. At its January 13, 1999 meeting, the Commission had several comments on the PC application that related to the compatibility and architectural design of the structures. Specifically: []The overall size and bulk of the parking structure is too large; ¯The location and amount of bicycle parking available is not adequate for the proposal; []The need to incorporate bathrooms; []The need to evaluate a "different look," e.g., structures designed such that the use is more readily apparent; The potential to include kiosks in the designs to provide information about transportation alternatives; and [] Support for the inclusion of non-parking uses in the design of the structure proposed for Lot S~L. []Compatibility with surrounding structures, specifically the potential impact of the proposed structure on the view of the Victorian style office building located at 420 Florence Avenue; CMR:341:99 Page 6 of 21 See Attachment D for verbatim minutes of January 13, 1999. At its second meeting on July 28, 1999, the Commission had additional comments on the proposed design of the parking structures. In summary, the general consensus was that the scale, mass, and bulk of the structures were too large. There was a concern that the proposed structures would be one of the largest buildings in downtown. To address this concern it was suggested that a minimum of one floor should be removed. The Commission believed the design of both parking structures needed to address the fundamental issue of building size and context. The Commissioners commented that the buildings are not responsive to the established surrounding buildings, and due to their size and design, do not fit in with the character of downtown. It suggested that the buildings need to address the human scale and engage pedestrians on the street level. They concluded that the designs should take a different approach and become "background" buildings. The following actions were taken on the parking structures at Lots S/L and R on July 28, 1999: Recommendation #1: Denial of Scheme ’B’ architectural design (4-0-0-3) Schink, Byrd and Beecham not participating). The Commission did not support the design based upon the reasons stated above. Recommendation #2: Two motions were put forth by the Planning Commission regarding approva! of the Planned Community. (PC) zone: one motion to approve and one motion to deny. Both motions failed on a 2-2 vote (2-2-0-3, Commissioners Schink, Byrd and Beecham not participating). Recommendation #3: Approved the waiver of required parking in-lieu fee for new square footage of the proposed Teen Center for parking structure on Lots S/L (4-0-0- 3, Schink, Byrd, Beecham not participating). Recommendation #4: Approved staff recommendation on the Tentative Subdivision Map with modifications to the text of the draft findings (4-0-0-3, Schink, Beecham and Bvrd not participating). Recommendation #5: Conditionally approved the staff recommendation finding that the DEIR was adequate and recommended that the City Council find that the DEIR has been prepared in compliance with California Environmental Quality Act (CEQA) and adequately analyzes the potential impacts of the project and related mitigation measures. As part of its approval, the Commission suggested staff include Comprehensive Plan Policies T-3 (reduction in auto use), L-5 (maintaining the scale and character and avoiding land uses that are unacceptable due to the size and scale), and Programs T-49 (implementation of a supply and demand management strategy for downtown), and T-46 (minimizing the need for all-day employee parking in the University Avenue district. (4-0-0-3, Schink, Beecham and Byrd not participating). CMR:341:99 Page 7 of 2! Recommendation #6: Approved staff recommendation relative to overriding considerations with the following wording change (underlining denotes additions) "That the City Council make a statement of overriding consideration for one finding of significance and potential unavoidable short term impact, that is temporary loss of parking" 4-0-0-3, Schink, Byrd, Beecham absent) Please refer to Attachment D for the verbatim minutes of the July 28, 1999 meeting. Architectural Review Board The ARB reviewed the parking garage project at two meetings. The first meeting was held on March 11, 1999 and the second meeting was held on May 20, 1999. At its first meeting on March 11, 1999, the ARB reviewed and commented on "Scheme B," the "building style" design presented by staff. The Board recommended continuance of the project to allow for further redesign of the architectural elements, which include the following items: 445 Bryant (Lots S/L) Restudy the relationship of the building to the coruer of Lytton Avenue and Bryant Street with respect to retail space or no retail space, with a preference for no retail space; Restudy the relationship of the structure along Florence Street to the .Victorian building; Consideration should be given to the possibility of setting-back the upper story, if workable; Strong conside’ration should be given to lowering the building to provide one additional level of underground parking; Restudy the architectural character of the building skin in terms of materials, relief, and character, how the windows relate to one another and to the overall building,, and to the other openings, especially with regard to proportion; Maximize the quality of the pedestrian experience along Bryant Street, Lytton Avenue and Florence Street; Encourage any other pedestrian level uses besides the retail space, including benches, seating areas etc. ¯Downscale the elevator and stair tower as much as possible; ¯Incorporate as much landscaping as possible on the building itself as wel! as in the ground around the building to mitigate mass of the building; and Be more inventive regarding the relationship of the lower portion to the upper portion of the building. 528 High Street (Lot R) ¯ Consider sunlight issues on the plaza; CMR:341:99 Page 8 of 21 Reconsider the upper story massing, to determine whether it can be pulled back away from the plaza to give it some degree of visual relief; Reconsider the provision of underground parking for two levels; Consider reversing the location of the entrance ramps on High Street; Reconsider the architectural character of the building in terms of the arch forms and materials; and The building should have an abstract character and less of a recall to a particular architectural period. See Attachment D for verbatim minutes of the March 11, 1999, meeting. The ARB, at its meeting on May 20, 1999, reviewed "Scheme C," which was created from modifications to "Scheme B" requested by the ARB at its March 11, 1999 meeting. The proposed modifications included the following: 445 Bryant (Lots S/L) The elevator and stair tower had been redesigned to significantly reduce bulk and height at the property, line. The building walls were stepped back and the roof had been lowered. The roof above the elevators had been sculpted to reduce the cornice height: ,The height of the retail space at the comer of Bryant Street and Ls~ton Avenue had been reduced to two stories instead of three. This change affected about 150 feet of street frontage, which is 30% of the project’s total frontage; and The window and cornice treatment had been revised at the upper level facade. 528 High Street (Lot R) The elevator tower was relocated away from the comer of the building. This allows a lower building height at the comer where the plaza is entered and sets back the elevator shaft from the street; The building comer is concaved at the plaza entrance to reduce the mass of the building at the street and widens the entry to the plaza. The entry to the garage is more clearly defined and the space created provides an opportunity for a public feature such as amvork or special landscaping; ,The size of openings in the wall has been increased by maintaining a ten foot separation to the adjacent building; and Installation of ground level planters that are placed below shear walls along the plaza will allow vines to grow on the building. In general, the ARB did not support the redesign. The Board perceived a direct conflict with the program requirements and the design of a parking garage. In particular, they ",’,’ere concerned with the building’s mass, scale, and height in relationship to neighborhood context. The Board made a motion to forward the application to the CMR:341:99 Page 9 of 21 Planning Commission with a recommendation for denial on both design Schemes B and C. This motion passed (2-1-2-0) Piha and Alfonso voted yes, and Peterson voted no. Board members Bellomo and Lippert stepped down because of conflicts of interest. The original recommendation in favor of certification of the Final EIR and approval of the PC Zone Change remained unchanged from its March 11, 1999 ARB meeting. See Attachment D for verbatim minutes of the May.20, 1999 meeting. Historic Resources Board The Historic Resources Board (HRB) requested the opportunity to review the proposal. On May 19, 1999, the HRB reviewed "Scheme C" as an informational only item with no action required. The following comments were made: Suggested a reduction in the above-grade height of the Lot SiL parking structure to four stories from the currently proposed five stories, so that it relates better visually to the historic structure across the street; Noted that the size of the Lot S/L parking structure will dominate the surrounding historic properties, which includes a building on the National Historic Register (450 Bryant) and is out of context with the surrounding area; Lighting should be carefully studied and should not produce glare at the street level; Suggested that the facade be made simpler and concentrate on the quality and the colors of the materials; and Suggested that alternative transportation, including public transit to downtown Palo Alto, will help alleviate parking problems. The parking deficit should not be the driving force in urban design. ISSUES FOR COUNCIL DIRECTION There are four issues requiring Council direction. subsequently: These are listed below and discussed 2. 3. 4. Exterior Appearance of Structures Height of Structures Use of Non-Parking Area at Bryant/Lytton Public Restrooms Issue 1: Exterior Appearance of Structures During the project’s feasibility study phase in 1997, several design "concepts" were presented to Council ("Scheme A"). Council approved the general concept of designing the garages to look like buildings, as opposed to having them look like parking garages. The effect of this direction resulted in Scheme B as shown on Attachment C, which was first presented to the ARB on March 11, 1999. At the March 11 meeting, the ARB requested that the architectural exterior of the building be reconsidered. The ARB felt CMR:341:99 Page 10 of 21 that buildings should reflect their use, i.e., a parking structure should not look like an office building. The intent of the ARB was that this new design concept would have the effect of reducing the building’s mass, since some of the exterior facade would be removed. Staff revised the design and the result, Scheme C, is shown on Attachment C. In order to proceed further with the design, direction is needed from Council as to whether to continue the "building" style design .(Scheme B), or to follow the ARB recommendation of the "parking structure" design (Scheme C). Scheme B blends in more with the context of the surrounding buildings, is consistent with prior Council direction, and will appear as a building. The Scheme B proposal could be identified as a parking garage by signage and other visual cues. Scheme C has the advantage of costing somewhat less and allows the structure to be more identifiable. The location of the public garage would also be more apparent to drivers, even without the use of signage. Alternatives: Council may want to pick a combination of styles, e.g., a "building" style for Lot S/L and a "parking garage" style at Lot R. If these styles build upon the Scheme B or C designs that have already been developed and presented to the ARB and Planning Commission, no additional design funding would be required. Alternatively, Council may decide that it is appropriate to investigate another exterior style. A third design option would require additional funding and would add approximately six months to the time required to reach the assessment district elections. If this alternative is desired, staff would return at a later date with a BAO for additional design and contract engineer funding. If Council wishes to proceed with this alternative, staff recommends that Council direct the Planning Commission, ARB, and HRB to select a representative to work with staff, architects from Watry Design Group, and property owner representatives to develop a suitable exterior design. The resulting design would then be presented to the ARB, HRB and Planning Commission in November/December 1999 and to Council in December 1999. An option available to assist the subcommittee could include an outside architectural firm to assist in developing the exterior design of the structures. This firm could be retained by Watry Design Group and work in partnership with Watry engineers and architects. The fee for any outside architectural firm would require funding through a future BAO. Issue 2." Height of Structures The Planning Commission and ARB members felt that the structures were too large and the mass/scale/bulk of the structures should be reduced. Removing one level from the top of each of the structures and replacing it with an additional undergound level was discussed at both the Planning Commission and ARB meetings. The number of levels for both structures had been discussed during preliminary reviews with the Planning Commission on July 10, 1996 and with the ARB on July 18, 1996. The CMR:34! :99 Page 1 lof21 above-grade levels for Lot S/L have not changed since that time. At Lot R, one additional level above what had been presented in the 1997 Downtown Parking Structures Feasibility Study is currently proposed in order to compensate for the 29 stalls lost in providing an alleyway and landscaped area at the north end of the site (CMR:355:98). This fifth level on Lot R adds fourteen feet to the building height, and is consistent with existing tall structures in the Alma Street corridor. The five-level desi~o-n offers many significant ad’vantages: . it allows pedestrian access between Alma and High Streets and subsequent access to public transit (Cal Train); it allows direct access from the parking garage to the businesses at the north end of the site; it provides a landscaped public area; it allows the walls of the garage to be open to air and sunlight; it eliminates the need for a solid concrete firewall, thereby reducing costs for artificial ventilation and lighting; and it removes most of the interior columns, resulting in less potential damage to vehicles. No basement was proposed for Lot R. The small size of the lot, when combined with the amount of space required for the construction of a basement ramp, as well as foundation issues related to an existing building at the south end of the lot, makes the cost prohibitive. One underground parking level was proposed for Lot S/L in 1996, but staff was directed by Council to add another basement level to maximize parking. Underground parking is more expensive than aboveground parking due to additional excavation, shoring, and the need to pump excess groundwater during construction as well as a thicker basement floor slab. The slab for a third underground floor would be below the water table, and would have to be thick enough to withstand the increase in water pressure, as the Palo Alto Municipal Code does not allow pumping of groundwater for more than two underground levels, due to concerns about water quality. In addition to the increased cost, replacing an above-grade floor with a basement level would result in a loss of parking stalls and increase the cost per added-stall. As currently proposed, the garages already provide 36 fewer spaces than the levels estimated in the 1997 Downtown Parking Structure Feasibility Study, due to space requirements for elevators, aesthetic considerations, and other design factors. Costs for some of the floor/basement scenarios presented to the Planning Commission and ARB are identified in Attachment E. The draft 1993 "City of Palo Alto Downtown Urban Design Guide" encourages 3-4 story buildings along Alma Street. The Lot R garage would be four floors (5 parking levels) and although taller than the existing adjacent structures, it would be consistent with recent approvals for taller buildings along the same corridor. In addition, given market trends, neighboring properties will likely be improved with substantially taller structures as permitted per the zoning requirements. Replacing the top level of the Lot R structure with a basement level would result in the loss of 6 spaces and increase the project cost by 34 percent. In staff’s opinion, adding a basement level is cost prohibitive and is not a feasible option. Providing room for a ramp to the basement would also require the loss of CMR:341:99 Page 12 of 21 bicycle and storage areas on the ground floor. In order to keep the bicycle/storage areas, another 5 to 7 parking spaces would be lost. Alternatives." Four Level Design: The 1997 Feasibility Study design was for 4 levels at Lot R. The fifth level was added in order to recover the parking spaces lost by pulling the structure away from the property line, and to keep the number of stalls similar to the approximate level approved in the Feasibility Study. The design and cost revisions were reviewed by the Parking Study Group (which is comprised of staff, business and property owners, ARB, Public Art Commission, and neighborhood representatives) and recommended for inclusion in the DEIR as the proper design for Lot R. However, the design could revert to the 4-level option presented in the 1997 Feasibility Study. This alternative would require construction to the property lines, elimination of the park and alleyway at the north end of the site, and would require solid concrete firewalls and mechanical ventilation. Reduce Height By Removing One Level or Adding Additional Below Ground Level: The height of one or both of the structures could be reduced by either removing one exterior level, adding additional basement levels or both. Additional funding would be required in order to redesign the structures, if it is desired to remove above-grade levels and/or add basement levels. This work is not included in the current design fee, and would need to be financed by a future BAO from the General Fund. Further Stud?’ ’ If Council wishes to pursue the idea of whether the size of either of the proposed structures is appropriate, a massing model or video imaging could be developed. The cost for either the model or video is approximately $20,000 for both sites. Issue 3." Use of Non-Parking Area at Bryant/Lytton An area of Lot L along the corners of B~ant/Lytton is not suitable for parking, due to size and shape limitations and entrance and egress requirements. The unusable space is shaped like an L, which presents opportunities for turning that space into some other desirable use. The unusable space for parking totals approximately 4,500 gross square feet (gsf). A design of up to 3-levels (13,560 gsf) was included in the zoning application package that was presented to the Planning Commission and ARB in order to preserve options for Council to consider for potentially building out. Since the City (via the assessment district) already owns the land, the cost of constructing at this site is relatively inexpensive, especially when compared to purchasing land and building at another site or renting a similar building. For example, as discussed in greater detail below, it would cost approximately $675,000 to build out a 4,500 gross square foot CMR:341:99 Page 13 of 21 Teen Center in the space of the proposed parking structure that is unusable for parking spaces. That works out to about $1.00 per square foot per month over 25 years in bonded debt service costs to construct a Teen Center. It would cost about $1.67 per square foot to develop office space for City use. (The reason for the higher cost for office space is that there would be an in-lieu parking fee required on that space). Staff has conferred with the City’s financial advisor, Stone and Youngberg, as well as bond counsel, Jones Hall. It is possible to build Out the unusable space for some City need, such as a Teen Center, as long as the costs for the build out are paid for by the City, and not by the assessment district. It is estimated that it would cost $150 per square foot todevelop this area ($675,000 per floor). Separating buildout costs would be relatively straightforward, so this would not present a financing problem. Buitdout of a parking structure space has been done in other downtown areas, among them Oakland (Yoshi’s Jazz Club and Restaurant at Jack London Square) and San Jose (the Camera Cinemas). Five potential options for building out the unusable parking area are discussed below. They are: development of a small open area that could serve as a mini-park, construction of a Teen Center, development of office space for City use, development of office space for private use, and development of retail space. Teen Center: The existing Teen Center building on Bryant Street is located on a parcel owned by the Gas Utility Fund (see Issue 3 above). It will have to be taken down as part of the garage construction. The existing Teen Center is 2,175 gross square feet. A space-needs analysis by Watry Design Group, dated July 30, 1998, identifies 5,415 square feet (SF) as adequate square footage for future Teen Center programs including classrooms, multipurpose rooms, offices, game and coffee areas, etc. Preliminary discussions with Community Services Department staff indicates that they believe the parking structure site and square footage would be very. viable for a Teen Center. A downtmvn location would be valuable for City teens. The traffic and parking impacts from a Teen Center would be much smaller than any other use, as the Teen Center would be used only part-time. If the Council wished to construct a Teen Center as part of the parking structure, the costs could be paid for through the sale of tax exempt bonds at the time the City sold assessment district bonds. Annual debt service would cost about $55,000 for a one floor Teen Center of 4,500 square feet, including bond issuance costs. This cost (about $1.00 per square foot per month) is very reasonable for downtown, where rents are typically in the $3.00-$4.50 per square foot per month range. Teen Center staff has requested that they have ground-level frontage for greater visibility. Since the ground floor is also the most valuable for commercial leasing, the CMR:341:99 Page 14 of 21 Teen Center could be provided with a space that spans both the ground floor and second floor. Based on the site’s configuration, this could be roughly 2,500 SF on the ground floor, and 1,500 SF of conference rooms and staff workspace on the upper level. Staff recommends that Council direct the design of a two-level structure at this comer. Development of Open Area/Mini-Park: This option is certainly possible, but staff. believes it is the least desirable of all options below. There is already a larger park area directly across the street at Cogswell Plaza that is not fully utilized by downtown workers and visitors. In addition, one of the foremost benefits of developing space is that it could be done in such a way as to mitigate some of the negative public safety problems inherent in a large urban parking structure, i.e., generating pedestrian traffic. A mini-park area would probably exacerbate rather than solve some of the problems people have expressed as to feeling unsafe as they park their cars at night, and then exiting a parking structure into an area with little pedestrian activity. As evidenced by Cogswell Plaza, an open area would likely not generate foot-traffic into the Lytton!Bryant area. A mini-park would also not provide the "stepping-down" visual effect that serves to reduce the garage’s massing. City Office Use: Given the shortage of space at the Civic Center, some portion of this buildout could also be considered for City needs, such as office space for the Downtown Commute Coordinator, and!or public conference facilities. After Teen Center usage, usage for City space that would otherwise have to be rented elsewhere is the most economical option from a strictly financial standpoint. While each floor developed at this comer would require a contribution to the In-Lieu Parking Fee requirement, the total cost of building out this comer would still be far less than the cost of renting space in Palo Alto. Each additional floor for City use, for example, would cost about $90,000 per year to finance through bonded debt service. This works out to about $1.67 per square foot per month, so building out additional floors would be economical, if there were City uses to be identified that would other~vise have to be rented elsewhere. Private Office Use/Retail: After consultation with the development and real estate community, it appears that the greatest demand for private use of this space would be for office or professional use rather than retail. Although this use would have an impact on the parking demand at the new garage, it would be less than the amount of parking that would be required for retail use. The inclusion of a retail element on the ground floor would add activity to the comer, which would help to enhance pedestrian safety in the evenings. Retail space would, however, attract vehicle trips and this increased demand for parking by both employees and customers would counteract some of the benefit of building a new" CMR:341:99 Page 15 of 21 garage. The demand for retail space in this area of downtown is not particularly strong, as the Lytton Avenue area tends to be used primarily for office/professional use. While the actual market for built out office and/or retail space is not "known, if the Council wished staffto consider either of these options for a second and/or third floor for private use, staff could issue a Request for Quotations (RFQ). The RFQ would seek bids to cover a medium to long time period (5-15 years), for the right to sublet the space for office and/or retail. Such an arrangement would free the City from acting as a landlord on a regular basis. If the cost of bids came back at over $1.95 per square foot, then the additional buildout could be built at no net cost to the City. ($1.95 per square foot would be the cost of building out space financed through taxable bonds). Third Level: The DEIR provides for up to three floors of commercial use at this comer. If Council desires a third level, it is recommended that the additional floor be used for staff or services currently housed at the Civic Center, so as not to increase the parking demand downtown. While a three-floor alternative would be aesthetically appropriate, it would have less of a stepping-down effect on the mass of the adjoining parking garage than a two-floor use would have. Issue 4. Public Restrooms Council directed staff to provide for public restrooms at each of the new garages. A separate built-in restroom (BIR) could be provided near the front of each structure. The BIR would be sized to accommodate one person (of either gender) at a time, and would need to be durable (stainless steel) and easily cleaned. The construction cost for one BIR is estimated at $60,000, or $120,000 for both parking structures. The annual cost for repairs for two BIRs is estimated at $6,000. Annual operating costs for BIRs, which includes supplies, materials, transportation, insurance, and supervision is billed at $50 per hour. The annual cleaning costs for BIRs are more expensive than Automatic Pay Toilets (APTs) when compared to the frequency of cleaning provided (CMR:106:99). It is, therefore, recommended that any restroom facilities at the garages be APTs instead of BIRs. Two APTs have been approved for installation downtown - one at Waverly Street and Hamilton Avenue, and the other near University’ Avenue at Emerson Street. The current ageement with JCDecaux allows for a price discount from $61,500 to $60,000 per unit per year, if two additional units are installed within four years of the contract date. This would save $280,399 (including inflation increases) over the life of a four to 20-year lease. Given the high APT lease cost, it is recommended that an area for APTs be set aside at each structure, and that the need for two additional units downtown be re- assessed prior to the expiration date of JCDecaux’s multi-unit rental rate. If a third or fourth APT is needed, they could be installed during construction of the parking CMR:341:99 Page 16 of 21 structures. If additional APTs were not installed, the land that would have been set aside for the potential APTs would instead become part of the landscaped area. Alternatives: Built-in facilities could be installed at one or both of the structures. At Lot R, this area could be at the north-east corner of the lot: approximately where space has already been set aside for a potential APT. Due to space constraints, a built-in restroom at Lot S/L would likely need to be located in the plaza area fronting Bryant Street. The area for a potential APT for Lot S/L is Currently Shown at the northeast end of the lot, near Florence Street. Alternatively, a third and/or fourth APT could be installed at the structure(s). RESOURCE IMPACT The current estimated cost of design and construction (in Year 2000 dollars) for the parking structure at Lots S/L is $16.3 million and $5.3 million for the parking structure at Lot R (CMR:308:97). These estimates were based upon conceptual Feasibility Study designs, which used the (then current) 1994 Uniform Building Code (UBC). A new version of the UBC has recently been adopted, which contains more seismic requirements for structural stability than the previous version. These additional design considerations will result in an increase in the construction cost in the range of 10 to 15 percent. Construction costs have not been updated since the 1997 Downtown Parking Structure Feasibility. Study, however, pending clarification of design issues discussed earlier. The attached BAO requests funds not to exceed $70,000 from the General Fund Budget Stabilization Reserve. This request is a one-time expense and there are no future year resource needs anticipated as a result of this BAO. Attachment B summarizes the BAOs approved to date in 1999-00 that impact the General Fund Budget Stabilization Reserve. This attachment also estimates future year ongoing costs associated with BAOs approved to date to provide a projection for the future resource need from the General Fund for those progams approved after the adoption of the 1999-00 Budget. The BAO would reimburse the design budget of CIP 19530 (Downtown Parking Structures) for the following items" Tentative Subdivision Map: The original design budget included monies for development of a Parcel Map, which was to be used as part of the Zone Change application. During development of the design, however, 8 underlying property lines were identified on Lot R and 20 on Lot SFL. These property lines had been in place since the parking assessment district acquired the property. In oi’der to process the Zone Change application, title to the properties had to be researched, discrepancies resolved and the property lines consolidated into one parcel by means of a Tentative Subdivision Map, which has resulted in a $23,000 increase in design costs. CMR:341:99 Page 17 of 21 Environmental Impact Report: This project had originally been budgeted to include the cost of preparing a Mitigated Negative Declaration. During the preparation of this document, however, it became evident that at least one potential impact could not be mitigated to be less than significant. Therefore, an EIR was determined to be required, .which covered traffic and other impacts in more detail. The $17,000 requested for the EIR includes funding for this more detailed assessment. Lot R Foundation Design: During underground site investigations, it was discovered that the foundation of the building at the south end of the site encroached slightly under City.’ right-of-way the entire length of Lot R. which is not uncommon for older downtown buildings. In order to avoid impacting this existing foundation, additional subgrade explorations were conducted and the design of the garage’s foundation was modified accordingly. The $45,000 requested is to further assess this issue. Funding for the EIR, title reports, and issues related to the foundation at Lot R, were advanced through the design budget. If Council does not fund the BAO, the design budget will only accommodate design up to the 40 percent completion stage, rather than the 50 percent level previously set as a goal by Council. The assessment district cost spread is based upon the construction cost estimate, and the more design information that is available, the more accurate the estimate is likely to be. Staff considers this to be important, given the volatility of construction costs in today’s economy. In order to reduce the amount of additional funding needed for the above items, it is possible to reduce the fee amount for contract C8103688 with Turner Construction Company. Turner is providing contract engineer services to supplement existing staff during the project. It is possible to shift $15,000 of this work back to staff by means of a deductive Contract Change Order, which can be authorized by the Director of Public Works. On a parallel track to the design work for the par’king structures, a contract for Council approval is included as an agenda item on the August 9 Consent Calendar for services related to assessment engineering, assessment soNvare development, downtown property owner project outreach, and Proposition 218 mail balloting services. Funds requested in the attached BAO: Title Reports & Subdivision Map Environmental Impact Report Foundation Design & Legal Issues Subtotal: $ 23,000 $ 17,000 $ 45,000 $ 85,000 Deductive Change Order - Turner Construction Total BAO requested: $(15,000) $ 70,000 CMR:341:99 Page 18 of 21 Approved or Pending Project Funding: Design Services - Watry Design Group Contract Engineer Services - Turner Construction Contract Planner Services Operating expenses (copying, postage, etc.) Assessment Engineer (pending approval 8/9/99) Subtotal: $ 716,236 $175,812 $ 45,000 $ 5,000 $ 72,400 $1,014,448 Total Financing Requested or Approved to Date: $1,084,448 The City has advanced funding for the current design effort to the 50 percent design completion stage. The Parking In-Lieu Fund was used to finance part of the design sern, ices (approximately $798,000), and the remainder of the initial $942,048 fee came from the General Fund Budget Stabilization Reserve. If an assessment district is not formed, the Parking In-Lieu Fund account will need to be reimbursed by the General Fund. If a new assessment district is eventually formed, proceeds from the future bond sale can be used to reimburse monies advanced from General Fund Budget Stabilization Reserve, and all future costs for design completion would be borne by the downtown property owners via the newly created assessment district. POLICY IMPLICATIONS Construction of the parking structures is consistent with several Comprehensive Plan policies: T-45: "Provide sufficient parking in the University Avenue/Downtown and California Business Districts to address long-range needs" [] T-47: "Protect residential areas from the parking impacts of nearby business districts" [] L-9 and L-23 (commercial space at Lot S/L), "Enhance the desirable characteristics in mixed-use areas. Use the planning and zoning process to create opportunities for mixed-use development" and "maintain University Avenue ... and reinforce pedestrian character." TIMELINE The 50 percent plans could be completed in early 2000, assuming no significant re-design is required. Upon Council approval of the 50 percent design plans, a proceeding to form the assessment district could be held in late winter or early spring of 2000. If the formation of an assessment district is approved, construction could begin in late 2000. It may be advisable to delay groundbreaking until the spring of 2001, hoxvever, in order to avoid construction during the holiday season and winter rains. CMR:341:99 Page 19 of 21 It is estimated that it will take one year to substantially complete the garage at Lot R, and 1.5 years to complete the Lot S/L structure. The garages could be built simultaneously or sequentially, and there are advantages and disadvantages to either scenario: Simultaneous construction: Construction of approximately 700 new parking spaces would be completed in 1.5 years instead of 2.5 years Potential construction cost savings as a result of a larger project Significant staff workload, which could impact completion of other CIP projects Sequential construction: Less noise and traffic disruption due to construction Easier to provide alternative temporary Parking for either 71 or 109 displaced spaces than for the 180 spaces that would be needed in simultaneous construction Staff will discuss this issue with the Parking Study Group and Chamber of Commerce and will return to Council with a sequencing recommendation prior to construction. ENVIRONMENTAL ASSESSMENT A DEIR was prepared as part of the PC zoning application and was presented to the Planning Commission and ARB. These boards reviewed the document, which is being finalized and will be presented later to Council for certification. The one significant and unavoidable impact reported in the DEIR concerns the loss of parking spaces during construction of the structures. If the structures were to be built simultaneously, the result would be a short-term los~ of approximately 180 parking stalls (71 from Lot R, 109 from Lot S/L) in the downtown area for a period of approximately two years. During the construction of Lot R, 71 existing parking spaces (37 permit, 34 public) would be lost, and 109 public spaces removed at Lot S/L. The contractor will also require parking areas for employees, subcontractors, equipment and material. Due to the shortage of parking in the downtown area, it may not be possible to replace all of the spaces lost during construction. As a result, the DEIR lists this issue as a "significant unavoidable impact." A separate committee, consisting of a Chamber of Commerce representative, merchants and staff, has identified several potential areas that might be available for parking during the construction period. Attendant parking and shuttles are also being considered. While several of the owners of nearby private lots belieye they would be interested in leasing their sites for short-term construction parking, it is too early in the design process to obtain firm commitments. The cost of leasing any private property, would likely be borne bv the assessment district. Staff will return with a plan for interim construction parking prior to construction. CMR:341:99.Page 20 of 21 ATTACHMENTS Attachment A: Budget Amendment Ordinance Attachment B: Summary of BAOs impacting the General Fund approved to date in FY 1999-00 Attachment C: Garage designs showing "Building Style" (Scheme B) design and "Garage Style" (Scheme C) Attachment D: Planning Commission and ARB me~ting minutes Attachment E: Basement construction costs for various design scenarios PREPARED BY: Karen Bengard, Senior Engineer, Public Works DEPARTMENT HEAD: ~ GLENN S. ROBERTS Director of Public Works DEPARTMENT HEAD: CITY MANAGER APPROVAL: GAWF Director of Planning and C( City Manager Parking Study Group Susan Frank Jim Baer Roxy Rapp CMR:341:99 Page 21 of 21 12 CITY OF PALO ALTO Memorandum TO: SUBJECT: August 5, 1999 City. Council DIRECTION ON DESIGN APPEARANCE AND MASSING FOR PARKING STRUCTURES; APPROVAL OF BUILDOUT OF LOT S/L, FOR A TEEN CENTER AND OFFICE SPACE; AND APPROVAL OF BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF $70,000 FOR DOWNTOWN PARKING STRUCTURE FEASIBILITY STUDY CAPITAL PROJECT NUMBER 19530 Copies of the attachments to the subject-referenced staff report, CMR:341:99, may be viewed at the Public Works Engineering counter located at 250 Hamilton Avenue, Palo Alto, or at the Main Library at 1213 Newell Road, Palo Alto. GLENN S. ROBERTS Director of Public Works ’J.~ FLEMtN0 ;’~llty Manager ’~)-~